Legislated Price Freeze on Electricity
The Electricity Pricing, Conservation and Supply Act, 2002
Current Info on Price Cap:
Starting April 1, 2004, electricity bills will reflect a change in the commodity price. That is the price you pay for all the electricity you use in your home or small business.
Consumers who were paying a capped commodity price of 4.3 cents per kilowatt hour (kWh), such as residential and low-volume consumers, will now pay 4.7 cents kWh for the first 750 kWh of electricity they use each month. The commodity price for electricity usage above 750 kWh, will be 5.5 cents per kWh.
These interim commodity prices will continue until the Ontario Energy Board introduces a permanent price structure, expected by May 2005.
Previous Info on Price Cap:
On December 9, 2002 the government passed legislation that sets the commodity price of electricity at 4.3 cents per kilowatt hour for low volume consumers and other designated consumers. This price is effective May 1, 2002 to May 1, 2006. This price will apply to residential consumers and most small business consumers. In addition, these consumers will be refunded for amounts they paid for electricity between May 1, 2002 and November 30, 2002 in excess of 4.3 cents per kilowatt hour.
It doesn't matter whether you had signed a contract in the past for electricity supply with an electricity retailer or not, you will be refunded for any amount paid over 4.3 cents per kilowatt hour for the electricity commodity for the period May 1 to November 30, 2002. BUT if you sign a contract for electricity supply after December 9, 2002, you will pay the contract price going forward, not the legislated price.
Who is eligible?
All low volume consumers are eligible. A low volume consumer means a consumer who annually uses less than 250,000 (Revised from 150,000) kilowatt hours of electricity.
Other designated consumers who are eligible for the legislated price freeze are:
A consumer who has a demand of 50 kilowatts or less.
A consumer who has an account with a distributor, if the account relates to,
- i. a dwelling,
- ii. a property as defined in the Condominium Act. 1998,
- iii. a residential complex as defined in the Tenant Protection Act, 1997, or
- iv. a property that includes one or more dwellings and that is owned or leased by a co-operative as defined in the Co-operative Corporations Act.
Some institutions are also eligible for the legislated price freeze:
- An approved charitable institution within the meaning of the Charitable Institutions Act.
- A home for special care within the meaning of the Homes for Special Care Act.
- A municipality as defined in the Municipal Act 2001.
- A university or college of applied arts and technology or other post-secondary education institution that receives regular and ongoing operating funds from Ontario for the purpose of providing post-secondary education.
- A board or private school, both as defined in the Education Act.
- A hospital as defined in the Public Hospitals Act, a private hospital operated under the authority of a licence issued under the Private Hospitals Act, an institution as defined in the Mental Hospitals Act, a nursing home within the meaning of the Homes for the Aged and Rest Homes Act.
- A registered charity as defined in subsection 248 (1) of the Income Tax Act (Canada) that has a registration number issued by the Canada Customs and Revenue Agency.
- other institutions as designated by regulation.
What about other rates?
The price freeze of 4.3 cents covers only the commodity portion of your electricity bill, ie. the kilowatt hours of electricity you consume. The legislation prevents electricity distributors from changing their rates for distribution and other charges unless they receive leave from the Minister of Energy to apply to the Board.
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